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Registered Retirement Plans (RRSP)

A Registered Retirement Savings Plan or RRSP is an account that provides tax benefits for saving for retirement in Canada. RRSP refers to a provision in the Income Tax Act that allows a person to shelter financial property from income taxes.
RRSPs may reduce taxes in up to three ways:

  1. Contributions to RRSPs, up to limits described below, may be deducted from income before calculating income tax due.
  2. Income earned within the account (interest, corporate dividends, trust distributions, capital gains) is not taxed until money is withdrawn from the plan, allowing the plan to grow faster than the same investments would grow if they were held outside the plan and thus subject to tax.
  3. Money may be withdrawn from an RRSP in tax years when one is in a lower income-tax bracket because of lower income (due to retirement, unemployment, etc.) than tax years when one makes contributions.

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Registered Income Funds (RRIF)

A Registered Retirement Income Fund (RRIF) is an account designed to provide retirees with a source of income after they have retired. Usually a RRIF is comprised of the funds that roll over from an RRSP, as an RRSP cannot be kept after the age of 71. The capital and interest in a RRIF accumulates tax-free, but is subject to tax upon withdrawal. Persons with an RRIF can withdraw any amount of money from the fund at any time, but any amount over the minimum will be subject to various degrees of withholding tax. The funds in a RRIF can only be sourced from another RRIF, an RRSP or another pension plan.

RRIF's can be comprised of multiple types of investments such as mutual funds, GIC's, stocks, and simple annuities including foreign content. Please contact an advisor for more information on purchasing RRIF's

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Registered Education Plans (RESP)

The Registered Education Savings Plan (RESP) allows savings for education to grow tax free in a special savings plan registered by the Government of Canada until a child named in the RESP enrols in a post-secondary education program.RESP funds invested qualify for government grants and additional benefits for lower income families.
Applicants must meet the following criteria:

  • have a Social Insurance Number (SIN)
  • have a SIN for anyone named in the RESP as a beneficiary
  • other criteria may apply
  • For each beneficiary, the lifetime limit is $50,000.

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Guaranteed Income Funds

Guaranteed income bonds promise a fixed income over a certain amount of time, usually a choice of between 6 months and five years. Guaranteed income bonds are a great means of keeping your money safe. Pros of guaranteed income bonds include: 

  • Guaranteed returns
  • The rate is fixed, so you will not lose out if the base rate goes down
  • Can choose to have your interest paid monthly, annually or on bond maturity
  • There are many options, so it’s important to do your research. 

Contact an Advisor, who will make recommendations and will provide advice on the best funds for your personal financial goals and needs.

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Investment Loans

We offer the following: 

  • RRSP Loans
  • RESP Loans
  • Non-Registered Loans
  • Leverage Loans
Our advisors can provide you with the knowledge and resources you need to understand your loan program options. 
Contact us today for more details.

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Annuity

An annuity is like a mortgage payment in reverse. Instead of borrowing money, you are investing money with a financial institution through Sound Wealth. With a simple, one-time deposit, Sound Wealth will put you on a plan that makes regular income payments to you containing both interest and principal. But, unlike a mortgage that ends after a specific period, the annuity payments can continue for the rest of your life, no matter how long you live.

People with various needs and financial goals choose annuities. Some examples of people who typically purchase annuities include those who:

  • require a dependable stream of income for life,
  • require a dependable income for a specific time period,
  • are not interested in making on-going investment decisions and want a simple investment,
  • don't want to worry about outliving their income, or
  • want to diversify their investment portfolio.

There are different types of annuities designed to meet a number of different financial priorities.  When choosing the right annuity for you, consider all of your options.  If you are interested in exploring your annuity options, please ask your Sound Wealth advisor for more information.

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Tax Free Savings Accounts (TFSA)

A tax free savings account is a flexible investment savings vehicle that allows you to earn investment income (including capital gains) tax-free. 

With a TFSA you can invest the maximum contribution amount ($5000).  Unlike RRSPs, the TFSA contribution room is not based on earned income.   

All Canadian residents aged 18 or older who file an income tax return are eligible to contribute to a TFSA.  There is not maturity date on a TFSA like a RRSP, and it doesn’t need to be wound-up or converted to a different investment vehicle.

 
 
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